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California Pipe Dreams

California Pipe Dreams

By Rebecca Burgoyne, CFC Research Analyst
May 10, 2010

California built its image as the Golden State, the land of opportunity, where families laid down roots in the sunshine, and jobs and educational advancement were ripe for the picking. In recent years, however, California’s golden glow has been tarnished by unwavering unemployment, a crippled economy, and a dysfunctional Legislature that twiddles its fingers instead of dealing with a now-projected $20 billion FY 2010-2011 budget deficit. 
 
Last year’s smoke-and-mirrors budget will be hard to repeat. Since January, when Governor Arnold Schwarzenegger released his barebones $82.9 billion budget plan for 2010-2011, legislators have largely ignored the issue, hoping for rescue from the federal government and much-improved state tax income. Last week’s news spoiled that; April personal income-tax receipts fell $3 billon below expectations, evaporating any hope of increased state income, and the financially strapped federal government will likely not come to the rescue with expected bailouts. Legislators’ pipe dreams of pulling budget solutions out of a magician’s hat proved to be nothing more than vain hopes and fantastic notions. 
 
Taxpayers are unwilling to take any more hits to their bottom line and want California to learn to live within its means. Despite outcry and Capitol demonstrations, in an election year, legislative leaders seem unwilling to saddle taxpayers with any more taxes. When the governor releases his May Revision on Friday, it will likely include stringent cuts to close next year’s projected $20 billion deficit and set the stage for legislative posturing and a long, hot summer of little budget progress.
 
The May “Revise,” which adjusts the governor’s preliminary January budget, is based on actual state income through the April 15 tax deadline. It marks the real beginning of tax season in the Capitol, supposedly ending with the passing of the final budget by the Legislature on June 15. Rarely has that deadline been met, and this year’s budget dance will likely continue late into the summer months. 
 
All bill proposals with fiscal considerations must be through their policy or subject-matter committees by now, and only fiscal committees may meet through the end of May. Those bills with considerable state costs are placed on suspense files, where they will be considered later this month – when a fuller picture of the state’s finances is known. Bills tracked by CFC that are currently “on suspense” include the following. (Dozens more could join them within the next week or so.)
 
AB 1655 (Evans, D-Santa Rosa) expands the authority of a juvenile court judicial officer to make orders regarding the administration of psychotropic medications to include a dependent child or ward who has been removed from the physical custody of a parent or guardian.
 
AB 1899 (Lieu, D-El Segundo) would include sexual orientation, domestic-partnership status, and gender identity on state forms that collect demographic information.
 
AB 2319 (Swanson, D-Oakland) continues efforts to crack down on child prostitution. SUPPORT
 
AB 2735 (De Leon, D-Los Angeles) provides that ownership transfer from one co-tenant to the other upon the death of one partner does not constitute a change of ownership for property tax assessment purposes. OPPOSE
 
SB 834 (Florez, D-Bakersfield) would allow a court to prohibit communication between a convicted sex offender and a minor victim. SUPPORT
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